Tuesday, August 04, 2009

Obama Administration Withholding Cash For Clunkers Data

How's this new era of openness and veracity working out?

The Obama Administration is withholding data on the cash for clunkers program, even as the Senate is supposed to take up the $2 billion extender? How exactly does this work?

Oh wait. He Won. Therefore he gets to do as he pleases, and can withhold data that might show things aren't quite as rosy as he wishes them to be?

Let's put this in context. The White House has been busy claiming that the Ford Focus is the top selling replacement vehicle under the cash for clunkers program, and yet other data seems to suggest that the top vehicles sold aren't GM, Ford, or Chrysler, but rather Honda, Toyota, and Hyundai:
DOT officials already have received electronic details from car dealers of each trade-in transaction. The agency regularly analyzes the data internally, producing helpful talking points for LaHood, White House spokesman Robert Gibbs and other officials to use when urging more funding.

LaHood, the program's chief salesman, has pitched the rebates as good for America, good for car buyers, good for the environment, good for the economy. But it's difficult to determine whether the administration is overselling the claim without seeing what's being sold, what's being traded in and where the cars are being sold.

LaHood, for example, promotes the fact that the Ford Focus so far is at the top of the list of new cars purchased under the program. But the limited information released so far shows most buyers are not picking Ford, Chrysler or General Motors vehicles, and six of the top 10 vehicles purchased are Honda, Toyota and Hyundai.

LaHood has called the popular rebates to car buyers "the lifeline that will bring back the automobile industry in America." He and other advocates are citing program data to promote passage of another $2 billion for the incentives -- claiming dealers sold cars that are 61 percent more fuel efficient than trade-ins and Ford's Focus is the top seller.

LaHood also said this week that even if buyers aren't choosing cars made by U.S. automobile manufacturers, many of the Honda, Toyota and Hyundai cars sold were made in those companies' American plants.

But there's no way to verify his claims without access to DOT's data.

Senate GOP leader Mitch McConnell of Kentucky has argued against quick approval of $2 billion for the program because little is known about the first round of $3,500 and $4,500 rebates.

"We don't have the results of the first $1 billion," McConnell spokesman Don Stewart said. "You don't have them. We don't have them. DOT doesn't have all of it. We'd hate to make a mistake on something like that."
Once again, the lack of hard data makes it hard to corroborate any of the information coming out from the White House on the effects of this program.

After all, other reports claim that the top selling vehicle is the Ford Focus. That could still be the case, and the remaining slots filled with Hondas, Toyotas, and Hyundais. They're not mutually exclusive.

The thing is that the data on the operation of this program should be available for everyone to review before Congress gets to vote on the extension of the program and an additional $2 billion spent. Instead, we're being told that it must be passed or else the sky will fall.

That's no way to run a government. It's a fear-based political dynamic that does no one any favors except the Administration, which clearly doesn't understand basic economic principles.

UPDATE:
The DOT has released the top 10 selling vehicles. As I suspected, it was possible to have the Ford Focus having the most sales, while Toyota, Honda, and Hyundai making up the bulk of the rest of sales.
Rank Vehicle Includes Hybrid Combined City/Hwy mileage
1 Ford Focus No 27-28
2 Toyota Corolla No 25-30
3 Honda Civic Yes 24-42
4 Toyota Prius Yes 46
5 Toyota Camry Yes 23-34
6 Ford Escape Yes 20-32
7 Hyundai Elantra NO 26-28
8 Dodge Caliber No 22-27
9 Honda Fit No 29-31
10 Chevy Cobalt No 25-30
It's curious that Toyota had three models on the list; Ford and Honda each have two, and GM, Hyundai and Chrysler each had one model. Ford made the list with the Focus, and the Escape, which has a hybrid model. The real surprise is the Hyundai Elantra made the list, but the Honda Accord didn't. That may have to do with the perception that the Elantra was the better deal with the rebate included.

This list doesn't actually break down the total sales for each and the percentage of sales that were made under the cash for clunkers. That information would clarify some of the issues.

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